Banks records: can you always get what you want?

Customers are entitled to access records of their
dealings with their bank but may be frustrated if the bank
can’t produce either historical records or original
documents, says Banking Ombudsman Deborah Battell.

The
scheme has just published a guide explaining how long banks
are required to keep different types of information, what
form that information can be held in and what rights
customers have to access information their bank holds on
them.

“People do not expect their request for personal
information to be turned down and sometimes complain to the
Banking Ombudsman. The guide sets out how we may be able to
help, but also lets people know that sometimes records are
simply not available.

“Common complaints are that a bank
does not have records which go back as far as a customer
wants or that original hard-copy documents are not
available.

“Banks are only required to keep transaction
documents for seven years, and these days records are held
in electronic form rather than hard copy. The fact that a
bank cannot produce an original hard copy loan document, for
example, does not mean the loan is invalid.

“We also
hear from people who think the bank should have records of
all discussions between them. Banks are not legally
required to take or keep these records and they make their
own decisions about these matters.

“Nevertheless, our
office certainly encourages banks to keep good records of
discussions, customer instructions and the bank’s
responses as they are often crucial in resolving
complaints,” Ms Battell said.

The guide also explains
the required timeframes a bank has to meet when providing a
customer’s personal information, and its obligations to
explain why if it declines a request.

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